Pantheon Strikes Gas at Zebu
The board of Pantheon Resources plc said that the Zebu #1 exploration well in Wharton County, Texas, has encountered natural gas in both its primary and secondary objectives. The Zebu #1 well was drilled to test a primary 3-D seismic amplitude anomaly indicated at 3,750ft and a secondary objective in a deeper section at 4,280ft.
Electric logs have now confirmed the presence of natural gas pay in the primary objective from 3, 750ft to 3,758ft and also in a deeper sand from 4,280ft to 4 292ft. As a result of the positive log confirmation, the decision has been made to complete the well for production testing. Production testing and the reporting of natural gas flow rates should occur in the coming weeks.
Zebu #1 was the first well to be drilled on Project Wharton, a farm-in concluded in June 2006. The Zebu discovery is on trend with numerous other prolific shallow Frio/Miocene producers in the immediate vicinity that have produced several billion cubic feet ("bcf") of natural gas.
Success at Zebu will lead to numerous additional drilling opportunities within the surrounding acreage that would represent a material reserve addition to Pantheon. These are also regarded as low-risk, ranging from 50% to 80%, with good early cash flow generation potential.
"Pantheon is delighted to have drilled and made a discovery with its first exploration well since company inception early this year," said Sue Graham, Pantheon's chairman. "This discovery, Zebu, was made in Pantheon's new project area (Wharton County), which was acquired post-IPO. Pantheon is currently involved in a four well program in this new project area. Based on the early success Pantheon has achieved, activity may be increased. Pantheon has numerous drilling opportunities in and around Project Wharton. The successful production testing of Zebu will lead to immediate cash flow for Pantheon and turn the company from a pure exploration company to a producer as well.
"Pantheon is also drilling a high impact well at Padre Island, named Plum Deep. Plum Deep is regarded as having a higher risk/reward than Zebu. The most likely target size at Plum Deep is 161-293 bcf. The Zebu discovery, combined with the current drilling at Plum Deep and ongoing drilling in the Wharton area and Padre Island, represents an exciting period for Pantheon."
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